New Mexico Administrative Code
Title 3 - TAXATION
Chapter 29 - MISCELLANEOUS STATE TAXES AND FEES
Part 13 - ENVIRONMENTAL IMPROVEMENT ACT
Section 3.29.13.10 - WATER CONSERVATION FEE - WHO MUST REPORT AND PAY

A. A public water supply system must report and pay the water conservation fee due both on water which it produces and on water which it acquires if the water is acquired from a person not a public water supply system who has not reported and paid the fee with respect to that water.

B. Example 1: H and L are both public water supply systems. H is a New Mexico municipality which distributes water by pipe to businesses and residents within its boundaries. H acquires all of the water distributed from L, another New Mexico municipality, which extracted the water from wells and surface sources. L must report and pay the water conservation fee with respect to all water which it produces, including the water sold to H. H has not produced water, owes no water conservation fee and need not file water conservation fee returns.

C. Example 2: E is an agency of the United States. E maintains facilities in New Mexico. E produces water from wells associated with its New Mexico facilities. E uses half of the water for its own purposes and sells the remainder to L, a New Mexico county and a public water supply system. L distributes the water by pipe to residences and businesses in the county. E is immune from the application of the water conservation fee and does not report or pay the water conservation fee with respect to any of the water E produces. L must report and pay the water conservation fee with respect to the water acquired from E because the water has been produced but no fee has been paid.